Order No. PSC-2024-0043-PAA-GU•Florida Public Service Commission native order document 00755-2024
Florida Public Service Commission native order document 00755-2024
Order No. PSC-2024-0043-PAA-GUFlapubserv
Full text
FILED 2/19/2024 DOCUMENT NO. 00755-2024 FPSC - COMMISSION CLERK BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In re: Joint petition for approval of amendment to territorial agreement in Pasco County, by Florida Public Utilities Company and Peoples Gas S stem, Inc. DOCKET NO. 20230125-GU ORDER NO. PSC-2024-0043-PAA-GU ISSUED: February 19 , 2024 The following Commissioners participated in the disposition of this matter: MIKE LA ROSA, Chairman ART GRAHAM GARY F. CLARK ANDREW GILES FAY GABRIELLA PASSIDOMO NOTICE OF PROPOSED AGENCY ACTION ORDER APPROVING AMENDMENT OF TERRITORIAL AGREEMENT BY THE COMMISSION: NOTICE is hereby given by the Florida Public Service Commission that the action discussed herein is preliminary in nature and will become final unless a person whose interests are substantially affected fi les a petition for a formal proceeding, pursuant to Rule 25-22.029, Florida Administrative Code (F.A.C.). Background On November 3, 2023, Florida Public Utilities Company (FPUC) and Peoples Gas System, Inc. (Peoples), collectively the joint petitioners, filed a petition seeking our approval of a first amendment (Amendment No. 1) to the Amended and Restated Territorial Agreement - Pasco County (Pasco Agreement). In November 2007, we approved the Pa sco Agreement, along with a Master Territorial Agreement (Master Agreement) and a gas transportation agreement between the Florida Division of Chesapeake Uti lities Corporation I and Peoples.2 This Master Agreement contains terms and conditions that govern all territorial agreements entered into by 1 By ORDER NO. PSC-2024-0043-PAA-GUPSC-2023-0103-FOF-GU, issued March 15, 2023, in Docket No. 20220067 -GU , the Florida Division of Chesapeake Utilities Corporation, as well as FPUC's Indiantown Division and Fort Meade Division, were consolidated with Florida Public Utilities Corporation, under the name of Florida Public Utilities Co mpan y. FPUC has assumed the rights and responsibilities und er a ll pertinent agreements entered into by its predecessor, the Florida Division of Chesapeake Uti lities Corporation, also known as CFG. 2 ORDER NO. PSC-2024-0043-PAA-GUPSC-2007-0944-PAA-GU, issued November 28, 2007, in Docket No. 20070399-GU, In re: Joint Petition for approval of territorial agreement in Pasco County, master territorial agreement, and gas transportation agreement, by Peoples Gas System and the Florida Division of Chesapeake Utilities Corporation.
ORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230125-GU PAGE2 Peoples and Chesapeake. 3 The joint petitioners, through Amendment No. 1, seek our approval to adjust the utilities' shared service boundary. During the review of this joint petition, our staff issued a data request to the joint petitioners on November 17, 2023, for which responses were received on December 13 , 2023. On January 10, 2024, the parties filed a corrected version of Amendment No. I. The cotTected version, initialed by counsel, contains the date that the amendment was entered into by the parties (October 31, 2023), which was inadvertently omitted in the original version submitted with the petition. 4 No other changes were made to the corrected version of Amendment No. 1. Amendment No. 1 is shown as Attachment A to this order. We have jurisdiction over this matter pursuant to Section 366.04, Florida Statutes (F.S.). Decision A. Proposed Amendment to Territorial Agreement FPUC and Peoples began territorial agreement discussions after a developer announced plans for a commercial complex in Service Area B. The previously undeveloped parcel of land in FPUC 's service territory is located geographically a considerable distance from the company's existing natural gas facilities, but very close to existing facilities operated by Peoples. The proposed Amendment No. 1 will facilitate serving the new commercial development within the geographic area described in Amendment No. l - Exhibit A as Service Area B (Attachment A). Service Area B is about 12,212 acres in size, and the new commercial development is projected to include a grocery store and other retail outparcels totaling about 60,000 square feet. The joint petitioners assert that in the next 5 to l O years, further development within the Service Area B could result in up to 1,000 new residential and commercial customers.5 FPUC determined that its nearest facilities to Service Area B are approximately 24 miles away in Plant City. 6 The utility asserted that construction of new facilities from its existing facilities in Plant City to Service Area B would cost several million dollars. Although a specific estimate was not developed, FPUC determined it was unable to extend service to the development economically and thus pursued the territorial modifications set forth in this petition. Peoples, on the other hand, has natural gas facilities about 320 feet away from Service Area B on County Road 577 (Curley Road). To provide natw-al gas services to Service Area B, Peoples would need to construct 170 linear feet of main lines, 150 linear feet of service lines, and a distinct regulator station, which Peoples estimate would cost $105,000. 7 Based on the 3 Id. 4 See Document No. 00141-2024. 5 Document No. 06579-2023, Staffs First Data Request, No. 5. 6 Document No. 06579-2023, Staffs First Data Request, No. I. 7 Id.
ORDER NO. PSC-2024-0043-PAA-GU DOC KET NO. 20230125 -GU PAGE3 comparative difference in the amount of required infrastructure, Peoples can more economically serve the commercial development than FPUC and is willing to do so. Pursuant to Paragraphs 3.D. and 3.E. of the Master Agreement, the joint petitioners have entered into Amendment No. 1 which, if approved, would transfer Service Area B from FPUC to Peoples.8 Pursuant to Paragraph 5 of Amendment No. 1, the terms and conditions of the Pasco Agreement would remain unchanged going forward. Prior to the second anniversary of our approval of Amendment No. 1, and no more frequently than every five years thereafter, Peoples and FP UC will confer regarding the status of the amendment. The joint petitioners state that the approval and implementation of Amendment No. I will not cause a decrease in the availability or reliability of natural gas service provided by either entity, or to the existing or future ratepayers of either entity, consistent with the standards set forth in Section 366.04, F.S., and Rule 25-7.0471(2)(c), F.A.C.9 As stated in paragraph 6 of the petition, approval of Amendment No. 1 will enable as many residential and business customers in Pasco County as possible to receive economical and reliable natural gas service and will not necessitate the transfer of any existing customers or facilities between the joint petitioners. Moreover, as stated in paragraph 6, absent the subject amendment, certain customers in Pasco County would be unable to obtain natural gas service; thus, the approval of Amendment No . I would be in the public interest. B. Rule Considerations Rule 25-7.0471(2), F.A.C., addresses the standards we must consider when approving territorial agreements for natural gas utilities. The Rule states: (2) Standards for Approval. In approving te1Titorial agreements, the Commission shall consider: (a) The reasonableness of the purchase price of any facilities be in g transferred; (b) The reasonable likelihood that the agreement, in and of itself, will not cause a decrease in the reliability of natural gas service to the existing or future ratepayers of any utility party to the agreement, and (c) The reasonable likelihood that the agreement will eliminate existing or potential uneconomic duplication of facilities. (d) Other relevant factors that may arise from the circumstances of a particular case. In our review, we considered each component of Rule 25-7.0471(2), F.A.C. Regarding paragraph (2)(a), we note that FP UC agreed to transfer the pertinent area to Peoples without 8 Se e Footnote 2, citing the Master Agreement approved by ORDER NO. PSC-2024-0043-PAA-GUPSC-2007- 0944-PAA-GU. 9 Document No. 06579-2023, Staff's First Data Request, No. 4.
ORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230125-GU PAGE4 compensation, which is reasonable because no facilities are being transferred. 10 Regarding paragraph (2)(b), the joint petitioners' have confirmed that the availability and reliability of service to existing or future customers wilJ not be decreased for either petitioner. The joint petitioners verified that there are no natural gas facilities in Service Area B and that construction would be necessary to service that geographic area. 11 Paragraph (2)(c) has been appropriately considered because, under the proposed territorial agreement, uneconomic duplication of facilities will not occur because Peoples facili ties are better positioned to serve the area economically and efficiently. 12 We find that paragraph(2)(d) gives us the flexibi lity to address any other relevant concerns that are case-specific. The joint petitioners assert that there are none.13 Under Rule 25-7.047 l (l)(e) , F.A.C., a proposed territorial agreement must provide information regarding the degree of acceptance by affected customers. We note, however, that in the instant case, there are no current customers and under this proposed territorial agreement, no facility transfers are contemplated. In addition, representatives from FPUC and Peoples have noti tied us that the developer is aware of, and has no objection to, the proposed territorial agreement. C. Conclusion We approve the proposed Amendment No. 1, which transfers a portion of FPUC' s service territory to Peoples. The proposed Amendment No. I will faci litate the provision of economical and reliable natural gas service by Peoples to residential and business customers in the proposed transfer area identified as Service Area B in Amendment No. I - Exhibit A, thereby avoiding duplication of facilities and services. Based on the foregoing, it is ORDERED by the Florida Public Service Commission that the proposed Amendment No. l to the Amended and Restated Territorial Agreement - Pasco County between Florida Public UtiUties Company and Peoples Gas System, lnc., shall be approved. It is further ORDERED that the provisions of this Order, issued as proposed agency action, shall become final and effective upon the issuance of a Consummating Order unless an appropriate petition, in the form provided by Rule 28-106.20 l , Florida Administrative Code, is received by the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the close of business on the date set forth in the '·Notice of Further Proceedings" attached hereto. It is further ORDERED that in the event this Order becomes final, this docket shall be closed. 10 Document No. 06579-2023, Staff's First Data Request, No . 3. 11 Document No. 06579-2023, Staff's First Data Request, No. 4. 12 Id. 13 Id.
ORDER NO. PSC-2024-0043-P AA-GU DOCKET NO. 20230 125-GU PAGES By ORDER of the Florida Public Service Commission this 19th day of February. 2024. DD Commission Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee, Florida 32399 (850) 413-6770 www.floridapsc.com Copies furnished: A copy of this document is provided to the parties of record at the time of issuance and, if applicable, interested persons. NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW The Florida Public Service Commission is required by Section 120.569(1), Florida Statutes, to notify parties of any administrative hearing that is available under Section 120.57, Florida Statutes, as well as the procedures and time limits that apply. This notice should not be construed to mean all requests for an administrative hearing will be granted or result in the relief sought. Mediation may be available on a case-by-case basis. If mediation is conducted, it does not affect a substantiaJly interested person's right to a hearing. The action proposed herein is preliminary in nature. Any person whose substantial interests are affected by the action proposed by this order may file a petition for a formal proceeding, in the form provided by Rule 28-106.201 , Florida Administrative Code. This petition must be received by the Office of Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the close of business on March 11, 2024. In the absence of such a petition, this order shaJI become final and effective upon the issuance of a Consummating Order.
ORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230125-GU PAGE6 Any objection or protest filed in this/these docket(s) before the issuance date of this order is considered abandoned unless it satisfies the foregoing conditions and is renewed within the specified protest period.
ORDER NO . PSC-2024-0043-PAA-GU
DOCKET NO . 20230125-GU Attachment A
Page 1 of 10 PAGE?
MCOIDOCl!.'r HO, l 10 'TIIWTORJAL Mlll8£NIHT - PASCO COW'l'Y
AMENDMENT NO, t
:tQ
AMRN ORO ,_NQ llll.'>TATIID ·mnruTORlAL AQJU~EM&lfi-PA§CO COVNJ.:X
THIS PLRST AMBNOMBNT TO THE AMBNDBO AND RPSl'ATBD TBRRtTORIAL q,.ti<
A~BEM BNT~PASCO COUNT'Y (thla "/uncodmant No. l ") Is nu1dund enteleld Into thb ~day : lf\¥ \<\
ofOotobor, 2023 , by and between Pforlda Public Utllltlos Company , a oc11poratlon of tho Stlto or
Florida, ho.rolnaftet rdarre<I to as (''FPUC,'' and Pooplea OuSylUICJl,ltl(.. ('POS"), aeo1por1tlon of
tho Stele of Florida, each bcl119 M lnveatol'-<>wn.ed ntt\lral gu local dlllrlbutlon ut!Uly III de.tlncd lo
Section 366.02(1 ~ Florlda StCIW!ea. PPUC and POS arc hClOinanct aometlmes rc!'med toalngularfy
as a "pe.4ty0 an<I collectlvcty as !he "partlu."
wrrrm.ssirra,
WHFllBAS,PPUCa11dPOSan,nabnlg11.1udlltlc,aubjoettothoreg\1lato:yJuriadlcdonof
tho Florida Pub! lo Sorvloo Commission ("Comrnl.uton") t1ndor Ol 1plct 366, Jlkxlda Slntutu; and
WRP.RBAS, u parll.ucat to thls Amondn\cnt No , I, POS and tho Florida Dlvls!ori of
ChoS11poako Utllltlos Corporatlon rcPO"), PPlJC'a ~ In lnlbre$1, cnteftd Into tl-.o
Amonde.d and Rostatod Tc.u1t.odal Agtocn,cx11-Pu:o Couu~ In luty 2007 ("Orlglr.al Agrcomc.nt");
and
WHBRBAS,CFO and POS aubtnltled d,o Onglnel Agrumontto tho Florida Pub Uc Seti/loo
c.omuilsslon ror IPf)tOval on J uly 6, 2007, oonalstonl with Seouon 4(1) oft h& ~/.ttter Territorial
A.grecmcnt bctweM UIO pa1tlos; and
WHRB.BAS, tho Florida Publ!o Set-vlco Comnlluton approved the Orlglr., I Agrconlffll by
Order No. PSC-07,0944,PM-OU 1 Issued N0Yon1\w28, 2007, In DocJcctNo , 200'/0399-0U, and
uscolalCd C<iu.sununt.tlng Order No. PSC',2007-1028-CO-OU; &bd
WHBRl?AS, U\o pM.io., havo 001:duoted U~lvco in aoeotd111ice ~ill tho Otlgfr.al
Ag1wncnt il1100 !ta approval by the Comnl.isslollj and
WHRRBAB, by Order No. PSC-2023-0103-POF-OU, l=acd}l..atch IS, 2023 1 in Pocl(o1 No.
20220067-0U, CPO, along with the other nature! giu utility holcilnga of CM..sapow UtWtlc.s
Corporation In Plorlda, were e<>t\SOlld.a!.od Into ono1-c.gul1tod natwil gu utility busiucsa u11!1und11t
tho namo of PlorldaPubtlo Utlllt!os Company: end
WHBRRAS,PPU½ ucho logi1l 1uoecuora1ul a~gtl otCPO, 1-.u a,sumedtnd ls bound by
d101.ctt\l40ftho Orfgl11alAgrecmw1, oon1!stCC1I with tho tcma ofd10Mapr Agrco1ncn t ~\ lhe
pa1tl°'; and
W1IBIU!A8, PPUC la utablo to oeonomlcally 11'le0t a l"tquest for aorvlco from • n~w
cu,tomcrlooated In an treuulgncd to It undct d\C Origlna_l Ai,~cmci,t; 11.1dORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230125-GU PAGE8 I l\kl!~:ot-1tA-t NO . l TO \'t!UUTOI\IAL AGtttr<ftl.r WHHREAS, PGS ls willing and 11ble to oconomieruly serve tho customer in que.<ition; 11nd WI JERE.AS, PPUC nnd PGS desire thul this Amendment No. l ,upe:slidu ond n:p!ncc the portions of the Original Agreement ns specified hereh,; end WHEREAS, iu Ol'der to enable ns many pet30ns llftd businesses as possible with.in Pasco County to ~i ve econom ical end reliable 1111tunll gas service, PGS 11nd PPUC have entered into rhis Amendment No. I to mOTC rapid ly nnd ce-0nomiclllly expand the avnlh1billty of nnturnl gu aorvice to poh:ntinl C11.~tomt.1-s in PilSOO County ; sod WHERBAS, the Co1T1JniS$I011 is empowered by the legislature of U10 Stato of Florida, pursuruu to Section 366 .04(3)(ft), Florula St«turu, to npprove nttl supervise :c.rri torial ag,.~nents betv.'CCn and among Olltuml gr.s utilities; NOW, ·numRFO!U.:, in fulfillrnc.nt of the purpos,e,afores:iid, and inooMidcmtion of the mutual covenant, !Ind 11g1ccmcnts herein cootalrtcd, which shall be oonstrued a., beins interdependent, Uie parties, subject to and upon the term, and condltlons herein set forth, ugrcc a., follows : I. For pu~ ofclarity, 1111 refc:.Nnoes to Che$8peclcC in the Original Agn,cmcn t shnll bo deemed to Include and incorporate Ji.kc refermco to 11PUC. 2. Paragraph 3 of the Origlnal Agreement shall be deleted and replaced with tho following paragraph : Ju between tho Parties. Che3npcakc's sccvico t1Ico in Posco Couuty, ttlorldn (the "Cbc.sapcako Service An:a") shall be a, sot forth on Exhibit A, which is incorporated herein by reference ar,d made a pt1t1 h<:rcof. TJtt; Chcsnpc:Akc Service Arca is also depicted on tho torrltory map attached hereto and rmdc n pnrt hcceof as Hxhibit C as tbosearcM shaded end designated rcspcetivcly us "Chesapeake Service Arca A", which aro.i L, more fully described lo tho legnl dc.,cription act forth in Bxhlbit A. 3. Exhibi t A to the Original Agreement shall be roviscd to delote tho section entitled "J .cgo l description of Chcsapeako Service A1ca 'B "'. 4. E.xhibit C to the Origi nal Agreement shall be deleted wd replACCd with I.ho mnp at.Itched hereto as Amendment l!.'<hibit A. 5. Exco1>t as modll1ed by tltls Amendmoul No . I, the Origlnnl Agr~mcnt shall rcf1lJl.ln unchanged r.nd continue In fu ll fo1'CC nud effect. 'l his AtUcn<lment No. I sluill have llO effect on the bounda.rics of tho respective service areas of the 11artic$ hCt'Ol o M the 11ome may DOW or herenfter exist except as :,pocificolly provided h ere in . lN WJTNBSS WHHilliOI', th e parties hereto havo cnUSCll th!$ Amendment No. I to the 2 Attachment A Page 2 of IO
ORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230 125-GU PAGE9 ,\~UlNOkt:H1' NO. 1 TO TY-RR1TORI1\L 1\GI\BBMIWT PA.SCO COOt-'7'/ Attachment A Page 3 of 10 Amended und Resmted Ten·itorial Ae.i-eemenl to be cxecutcd by their d\1 ly mllhnrizcd officeJ-s as of the dnto nnd yoar first abovo staled. P~OPLES GAS SYSTJ" C. ? Dy: / --- 3
ORDER NO. PSC -2024-0043-PAA -GU DOCKET NO. 20230125-GU PAGE 10 l'JCF.JIOH~»T WO. l TO TBRRl'l'ORIA I, lt\CIUJ:EHl!NT PASCO ooumY F1,01u AP un1.. 1c u 1 1w1 11\S Co:.t r ANV ' By: Chfl; ~'½!.~ -~ l' nnt Name 4 Attachment A Page 4 of 10
ORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230125-GU PAGE 11 AMt.HOC~mT llO. J TO Tf.RRl'tORIAL ACR£P,.M£i,.'T PASCO COUNTY AMENDMENT EXTl llll 'f A Chesapeake (PPUC) and Peoples Gas System, In c. Pasco Co unty, Florida Service Area Map s Attachment A Page 5 of 10
ORDER NO. P SC-2024-0043-P AA-GU DOCKET N O. 20230 125 -GU PAGE 12 R19E R20E ~ ~ Q: Q: T24S T25S ~ ~ - - Q: Q: - s R19E R20f= / $=].=.;ti::;~...------- ·-. - l1 I ,l!_f' I ' " --"I- ,-I :::,- R20E ----.. .. ........ _~ :- .J.. T24S T25S ( R20E R21f= Attachment A Page 6 of 10 T25S I J ~ -
ORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230125-GU PAG E 13 Attachment A Page 7 of 10 FPUC Area Map - Exhibit l.F M iles 0 1 2 t I As of 12/12/2023 D Service Area B Distribution Main: - Piped Natural Gas system FPUC Plant City Natural Gas System I
ORDER NO. PSC-2024-0043-P AA-GU DOCKET NO. 20230125-GU PAGE14 Attachment A Page 8 of 10 --------,---,,--,---,-------,-----.----------- iR20E R21E i Ex1st1 g Peoples Gas 6" .,.,_.., ! Main ==--~- J ~ ~,_...... f ·""" JI 1s ...,;;rv'JI!!,~.;~ ~ § ........ R19E R20E 1-·-i -_,1 _'_1_' l--i_'-_'_·1~'-£..'-LLL~~~~-4,,'+-,,l,~Y.,..~~.L.A .-J----::-----T2;;.;...5;;.;..S;;;.__-..::-_~-~ -II - ~ l l § R20E \ - ,.. 1 ..... ~ . ......, ...c,c, .,., ...... ~ 7l001<001S ~ :,,,.. m J),,6.l! OCM> .... u,...,,, ,... _'"-'' ""'1t - 0«£1"" r 1 " ?
ORDER NO. PSC-2024-0043-PAA-GU
DOCKET NO. 20230125-GU
PAGE 15
Attachment A
Page 9 of 10
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1n 1o-,n,;ni() 25 Souttt. Rart9t 20 £a1t. Posco COCJnt 1• /lo,,do.•
that Por1 of s«tf'OI': 21 Jyit,9 South Qlld [o!lt ol 111~ t19"t -01- ..ay fo., f)'"dolt Rood or,d '"'"" ~t11 ona Cost
,, thr 1l9ht • of- •ay for w l(efldfac Hood.
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fhat Port ol $,x.t,o., 28 1rn9 Sout!Hufy of thr 1,·ry,1-of -,oy ,,., \I, ;<onu,t·r. Rocu,
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1>a.ndcxy of Sqc::on 19.
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,i'ghl .. ol-1roy tor ltCfldC<Yt Hood,
tnol Porr of S<-ct'°" JO l'jfng ,\'esttv1y ol tht:f "9ht of .. oy lor Hondco,t Hood, Ttu,t Po,t ol s«tiott JI ,~"9
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In lo•n•~·z; 16 So.1111. Rongo 10 t:ost, Posco CO<Jflty flo,,<10:
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lhol Port ol Soclian IJ 1:jng NorthOlly "'"' t·o,1or1,- 01 tho ,~t-ot•woy lo, 5rote RoorJ ~•. 11101 Port of
s~,tion ,., lyinq No,thcrtf 011r1 Costctrfy al tho riqt,t ol • at lor Stolt: Rood .54 ·
,~ ro..,s.~;i, 26 Sou1n. Range 21 tost Posco Counr, nor~a·
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~ORDER NO. PSC-2024-0043-PAA-GU DOCKET NO. 20230125-GU PAGE16 ~~.....,.........,,.~.. ~-...... U~ t•'W #I ,#fe ___,. ___...____... ....,, .......-····- .. . ..... __. .. -·-- ·--·~...~ ,..,. ~- - . - ,..,,., ,. ,.,,__.·~--- .\,. ... -- ..,._. __ _,, co · --··-· •.... _ -·-·---..- Attachment A Page 10 of 10
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